Temecula Inc. began business on January 2015. The company made an investment of $600,000 on used fleet equipment. The useful life of the equipment was 6 years. The company decided to depreciate the equipment using the straight-line method. However the value of the equipment was $220,000 by 2017. In 2018 the company decided to borrow $1.2 million at 4%. The company also recommended buying new fleet equipment for $800,000 with a $160,000 savings on fuel cost, but $20,000 for maintenance. Temecula Inc. wants to sell the old equipment for $425,000 after three years, but a buy will only pay $100,000. Should the company buy the new fleet equipment?

I need to complete an income statement and balance sheet for the historical finanacial data, new delivery equipment, and the retained old equpiment.